Fannie Mae Prices $763 Million Multifamily DUS REMIC Under Its GeMS™ Program

WASHINGTON, January 17, 2012 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) priced its first Multifamily DUS REMIC in 2012 totaling $763 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on January 13, 2012.  

"A wide spectrum of investors came out of the gate with orders, and 2012-M1 was quickly oversubscribed.  Based on the origination volumes we have seen coming through the Agency execution, and the continued demand for GeMS, I anticipate larger deal sizes and monthly issuance this year.  Even as analysts are forecasting continued volatility in the broader CMBS space, there is clearly a strong appetite for Agency CMBS," said Kimberly Johnson, Vice President of Multifamily Capital Markets.

All classes of FNA 2012-M1 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal.  Yield maintenance prepayment premiums apply to all underlying loans.  The structure details for the multi-tranche offering are included in the table below.

   
    Class     Original Face     Weighted              Coupon    Spread    Offered
                                Average    Coupon      Type               Price
                                  Life
    ---                           ----
    A1         $80,670,000        5.42     1.811       Fixed     S+48      100.50
                                                        Rate
    ---                                                 ----
    A2        $437,879,820        9.69     2.729        Fixed    S+70      100.50
                                                        Rate
    ---                                                 ----
    AB         $70,700,000        9.02       n/a        Fixed    Not        Not
                                                        Rate   offered    offered
    ---                                                 ----   -------    -------
              $174,036,780        9.00      1mo     Floating     L+65      100.00
    FA                                     L+65         Rate
                                         7.0% Cap
    ---                                             --------
              $174,036,780        9.00       n/a     Inverse     Not        Not
    SA                                              Interest   offered    offered
                                                        Only
    ---                                                 ----
    X         $763,286,600        9.02       n/a    Interest     Not        Not
                                                        Only   offered    offered
    ---                                                 ----   -------    -------
    Total     $763,286,600
    -----     ------------
     
    Collateral:                          118 Fannie Mae DUS MBS
    Geographic Distribution:             CA (27%), TX (16%), NY (12%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR):  1.70x
    Weighted Average
    Loan-to-Value (LTV):                 65.04%
    Settlement Date:                     1/30/2012
   
    Lead Manager:                        Credit-Suisse
    Co-Managers:                         J.P. Morgan and Wells Fargo

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2012-M1) available on Fannie Mae's GeMS Archives page at http://www.fanniemae.com.

Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws, including statements relating to anticipated deal sizes and issuance and future appetite for Agency CMBS. Actual results, deal sizes and issuances could differ materially from what is anticipated in these forward-looking statements as a result of numerous risk factors, including those discussed in the "Risk Factors" section of our Multifamily REMIC Prospectus dated as of June 1, 2010 and the related prospectus supplement for the 2012-M1 transaction. In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae issued security, you should read the applicable prospectus, related prospectus supplement and other offering documents. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission ("SEC") available on the Investors page of our Web site at http://www.fanniemae.com and on the SEC's Web site at http://www.sec.gov.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

SOURCE Fannie Mae